Scotland’s leading trade body for plumbing and heating professionals has met MPs as part of its continuing campaign to amend pensions legislation having “devastating consequences” for hundreds of UK businesses.
Established in June 2018, the All-Party Parliamentary Group (APPG) for Plumbers’ Pensions was re-convened this month following the general election.
The group is chaired by Pete Wishart MP, who along with other politicians met leaders from SNIPEF and the Plumbing Employers Action Group (PEAG) to reconstitute the APPG.
SNIPEF – the Scottish and Northern Ireland Plumbing Employers’ Federation – has been pushing for changes to pension legislation, which has left businesses participating in the otherwise financially sound Plumbing and Mechanical Services (UK) Industry Pension Scheme, with potential staggering liabilities.
The Scheme was established in 1975 and is a multi-employer scheme covering businesses throughout the UK. Under section 75 of the Pensions Act 1995 as subsequently amended, participating employers become liable for what is known as a section 75 employer debt under certain circumstances, including when they withdraw from the Scheme.
SNIPEF chief executive Fiona Hodgson said: “This debt legislation places a huge financial liability on employers if, for example, they want to retire, sell or cease operating their business. This is even though they have paid all contributions properly due to the scheme, which is well-funded and able to pay out its benefits.
“This is highly detrimental to these businesses as it means they have no incentive to take on apprentices, create jobs or grow their operations. We welcome this opportunity to engage with lawmakers on this issue and hope to find a speedy resolution to a situation that has taken a grave financial and mental health toll on our employers.”